Output Gap Calculator
Powered by @Calculator Ultra
Unit Converter
- {{ unit.name }}
- {{ unit.name }} ({{updateToValue(fromUnit, unit, fromValue)}})
Citation
Use the citation below to add this to your bibliography:
{{ citationMap[activeStyle] }}
Find More Calculator ☟
The output gap is a key economic indicator that shows the difference between the actual GDP and potential GDP as a percentage of potential GDP. This metric helps gauge whether an economy is overperforming or underperforming relative to its potential capacity.
Calculation Formula
The output gap is calculated using the formula:
\[ \text{Output Gap (\%)} = \frac{\text{Actual GDP} - \text{Potential GDP}}{\text{Potential GDP}} \times 100 \]
Interpretation
- A positive output gap indicates the economy is operating above its potential, which can lead to inflation.
- A negative output gap suggests the economy is underperforming, signaling unemployment and unused resources.
This calculator helps in understanding economic conditions and guiding monetary or fiscal policy decisions accordingly.